Cable packaging-optimization
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  • 1. CABLE PACKAGING OPTIMIZERPower Conductors & Telecom Industry
  • 2. Table of Contents• PACKAGING IN CABLE INDUSTRY• PACKAGING COST STRUCTURE & PAIN AREA• OPTIMIZATION APPROACH• SOLUTION – CABLE PACKAGING OPTIMIZER
  • 3. Packaging in Cable Industry Cable Industry uses drum (as shown in fig.) for packaging the cable inside and dispatch it to the customer Due to large variation in product SKUs, there are indefinite variations in drum dimensions Cable drum which contains expensive cable material inside, has to follow certain design standards in order to meet qualitative parameters Qualitative parameters which determine the drum dimension are  Customer specification  Drum design standards (IS 1778; ASNZ 2857) • Barrel/Flange diameter ratio • Gap from the flange circumference • Thickness of the flange  Production assembly line take-up  Container load capacity  Container size Figure: Wooden Cable Drum
  • 4. Packaging Cost Structure & Pain Area 2% Pain Area 18% Wood Whether it is a wooden or steel drum, too Steel many size variation results in lack of Freight standardization and sub-optimal 9% 51% Assembly, Consumables packaging. This induces Outer lagging • Higher purchase cost of drum 4% CST : 2% • In-efficient procurement and dispatch planning 16% • Lower drum utilization Figure: Sample Cost breakup for a Cable Wooden Drum(2010 Rates) • Higher logistics cost Cost Variants Constraints Opportunity Wooden Part •Cartelization Among Drum Manufacturers •Alternate Suppliers •Design Standards •Setting-up a saw mill •Scrap selling •Alternate material •Seasonal damage (poor recyclability) •Design optimizationComponents •Inferior quality of wood, already priced at lower rate •Standardization Outer Lagging •Scrap selling •Nalcoflex or mixed combination •Inadequate handling •Handling training •No other alternative •Steel component price negotiation Steel Component •Assembling constraint •Logistics constraint •Standard length optimization operational Too many SKUS •Standard length variations •Drum SKUs standardization Zero Recyclability •High steel drum prices •Steel drums on rental basis •No infrastructure for reverse logistics •Outsourcing maintenance & reverse logistics
  • 5. Optimization ApproachSelect a product, allocate the productionmachine based on stranding While standardizing the Calculate the standard length of wire a bobbin SKUs, its equally important (both small and large) can take; determine the to analyze the impact on standard length for this product Total Logistics Cost involved. A detailed comparative logistics analysis was done, and it was found that Determine the volume and weight of the conductor for the selected standard length with reduced SKUs, and better dispatch forecast , we can minimize the under-utilization in logistics. Plot the volume required by the conductor on a Scatter Plot along with the other existing conductors Choose the Drum-Cluster where this new product belongs to and allocate the drum from the existing standardized set; In case of specific requirement it could use a new drum design
  • 6. Solution – Cable Packaging Optimizer A web-Based ApplicationSelect optimal packaging drum as per desired design, cost, service levels andlogistics objectiveOUT PRODUCTUsing cable drums to package different products and dispatch it to the customer, faces followingchallenges•Determining optimal drum dimensions (FxBxT) to match every customer demand as per requirementlike conductor type & dimensions•Reducing logistic cost by increasing the number of packaged drums in a truckBenefits•Packaging cost reduction up to 15%•Increased accuracy of Drum Forecasting•Huge Time Reduction in Drum Planning•Possible drum purchase price negotiation due to increased order size•Logistics savings generated up to 10%
  • 7. Cable Packaging Optimizer Input Parameters Metrics Area Key Metrics • Standard Length & Weight Product Specification • Bobbin Length • Optimized Production•Stranding•Wire Diameter • Maximum Drum Space•Conductor Diameter • Volume Requirements Utilization•Weight of the Conductor(Kg per Km) • Optimized COST/MT•Packing Factor • Drum Allocation • Drum SKUs recommendationFigure: Cable Packaging Optimizer screenshots (drum dimensions reference from IS-1778)
  • 8. Cable Packaging Optimizer (Illustrations) Distribution Map with Visual Analytics of sample quarterly order Export Domestic Total SKUs Estimated Cost/MT  Estimated Cost/MT  Estimated Cost/MT  No of SKUs reduction reduction reduction reduced
  • 9. THANK YOU Contact Us : +91 22 41232770 Email: sales@olinks.co.in Website: www.olinks.co.in